36% growth in Bitcoin price/digital currency market passed 700 billion dollars
With the increase in the market value of Bitcoin, for the first time in the last seventeen months, we see the mark of passing the $700 billion mark. This figure indicates the possibility of the return of the bull market. Bitcoin’s growth in value has been accompanied by an almost 8% price increase in the past week, which has brought the cryptocurrency to a price of approximately $37,300. This price level has been unprecedented since the Terra blockchain crisis in May 2022.
The recent rally follows a 36% rally from October’s low of just under $27,000, driven largely by increased institutional appetite and expectations for approval of bitcoin ETFs in the US by early 2024. Investment funds have shown signs of confidence in Bitcoin, and the holdings of Bitcoins have reached an all-time high of 863,434 Bitcoin units.
Pointing to recent market strength, ByteTree founder Charlie Morris says Bitcoin’s strong price trend isn’t surprising, attributing the strength to expectations for institutional capital inflows following the adoption of ETFs. These expectations have undoubtedly played an important role in the recent boom of the market.
Meanwhile, BlackRock’s move to set up an ETF for Ethereum has dampened some of Bitcoin’s strength in a week that saw it close to $38,000. These developments may have led some investors to sell Bitcoin and buy Ethereum.
Predicting Bitcoin Price Targets
However, the majority of market analysts still believe in further price increases. For example, Matrixport predicts that the price of Bitcoin will reach at least $42,000 with the adoption of ETFs in the United States.
Meanwhile, other analysts have pointed to a potential price level of $48,000 as the next price target. Corey Mitchell of Trading.biz has even more ambitious predictions, believing that Bitcoin may reach its all-time high by mid-2024, which could lead to an 85% rally from current levels.
Even if the predictions of JP Morgan analysts are correct and we see a price drop, given the roughly 125% increase in the price of Bitcoin this year, it seems that Bitcoin is indeed in a bull market.
In the near term, Bitcoin price action may continue to be influenced by developments related to crypto ETFs in the United States. In addition, upcoming macroeconomic events such as consumer price index inflation data and US retail sales in October could further stimulate the market, provided they are followed by signs of easing by the Federal Reserve.
The long-term goals for this digital currency are for the price to reach the psychological level of $40,000, then the April 2022 high at $43,000 and the March 2022 high around $48,000.